Melrose Ltd manufactures electrical switches. Last year Melrose sold 25,000 switches at $50 each. Total costs amounted to $1,050,000, of which $300,000 was considered fixed. In an attempt to improve its product, the company is considering replacing a component part that has a cost of $5 with a new and improved part costing $9 per unit in the coming year. A new machine would also be needed to increase plant capacity. The new machine would cost $36,000 have a useful life of 6 years and no salvage value. It is estimated that all other variable costs will be the same cost per unit in the coming year. The only increase in fixed costs, over the preceding year, would be caused by the installation of a new machine to increase plant capacity. The company uses straight line depreciation on all assets. Ignore income taxes. Required a) What was Melroses break-even point in number of units last year? b) How many units would the company have to sell last year to earn $196,000 profit after tax if the company tax rate is 30%? c) If Melrose holds the sales price constant and makes the suggested changes, how many units must be sold in the coming year to break even? d) If the firm holds the sale price constant and makes the suggested changes, what will the revenue have to be in the coming year to make the same net profit as last year? e) If Melrose wishes to maintain last years contribution margin ratio in the coming year, what selling price per unit must it charge to cover the increased direct material cost